Over the next four years the investment is expected to create 1,500 jobs at firms nationally.
The funding will help to enhance the product development facilities at PETEC with the introduction of equipment capable of prototyping applications in printable photovoltaics, ultra-efficient lighting, printable flexible displays and intelligent packaging.
PETEC is a division of the Centre for Process Innovation (CPI). The £9.5m facility opened in March and secured £2m of funding from the European Union in April to install hi-tech equipment in a newly opened cleanroom.
The facility connects r&d with commercial activity using proof-of-concept devices and pilot-scale manufacture, helping clients identify the materials, industrial steps and investments required to bring products to market quickly.
PETEC is also the national base for the emerging printable electronics sector, which is forecast to grow to £15bn globally by 2015 and to £125bn by 2025.
Part of the investment is in 500m2 of hi-tech equipment space for large-area application and pilot product manufacturing and the development of applications and knowledge to attract new companies to the UK.
Alan Welby, director of strategy at One North East, said: “This announcement is a major boost for the North East and confirms the region’s position at the cutting edge of UK manufacturing.” www.uk-cpi.com